Wednesday, October 13, 2010

Federal prosecutors have launched an investigation into a prominent Los Angeles developer accused of bilking taxpayers out of millions of dollars, building potentially unsafe apartments and possibly making improper gifts to public officials.

Advanced Development and Investment Inc. has submitted fraudulent bills to cities for affordable housing projects, failed to keep proper records on more than $650 million that flowed through its checking accounts and transferred as much as $80 million to personal accounts — at least one in India — according to a court-appointed receiver's report on the company's activities.